Non-IPERS-Covered Employer
If you retire and return to work for a non-IPERS-covered employer, there are no restrictions on earnings. Your earnings do not affect your IPERS benefits. However, keep in mind that Social Security has certain income limitations that apply to your Social Security benefit.
IPERS-Covered Employer
If you retire and return to work for an IPERS-covered employer, the following rules apply:
Age 65 or older
There is no limit on the amount you can earn. Your benefit payment is not affected by your earnings.
Age 55 up to Age 65
If you return to covered employment after completing a bona fide retirement, your earnings will be subject to an annual earnings limit. The limit does not apply if you are elected to public office. Currently, this annual earnings limit is $50,000 of IPERS-covered wages per calendar year or the annual Social Security wage limit, whichever is higher. These wage limits may change each year. Review these at www.ssa.gov.
Although you do not pay IPERS contributions for all types of compensation, certain types of wages count toward the annual earnings limit. Wages that count toward the limit include bonuses, allowances and employer contributions to defined contribution and deferred compensation retirement plans.
There is a penalty of 50 cents for each dollar you earn over the earnings limit. After the end of the calendar year, IPERS will determine the amount you exceeded the limit by and let you know the amount that must be recovered. To repay, you may choose to have your monthly benefit reduced or pay a lump sum. You will be required to confirm your decision with IPERS in writing.